29 November 2014
As per section 206AA,
In case of failure to furnish PAN , the deductor has to deduct the tax at a ratehigherof
a)The rate prescribed under the Actor
b)The rate in force (rates as mentioned in the Finance Act)or
c)The rate of 20%
Please Can anyone explain what is the meaning of the above (a) and (b) with one simple example.
Thanks in advance for helping in this regard.....
29 November 2014
a) rate prescribed in act like u/s 194C rate of TDS 1% for individual b) rate as mentioned in finance act (if changed by act or some condition given in act) and c) 20%
if individual have no pan then 20% will be deducted. if have pan then 1%.
if finance act add the edu cess then rate change accordingly.
you remember some year ago cess is also deducted with the tds. at present its removed by the finance act.
CAclubindia
